- The dispute between Kenya and Uganda over the importation of Uganda petroleum products has moved to the East African Court of Justice (EACJ) corridors
- Uganda is suing Kenya over her refusal to allow it use of the Kenya Pipeline Company (KPC) infrastructure to move its refined petroleum products from Mombasa port to Uganda under a new arrangement as directed by Uganda’s Cabinet
- In the suit, Uganda accuses Kenya of denying its entity, the Uganda National Oil Company (UNOC), the rights to operate as an Oil Marketing Company (0MC) in Kenya
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As Uganda waits for the case it has filed at the EACJ to be heard and determined, it is expected to cease buying fuel from Kenyan OMCs after it entered into a five-year contract with an Arab company that will now supply its entire fuel needs
In a bid to secure its rights to use Kenya’s infrastructure for transporting petroleum products, Uganda has filed a lawsuit against Kenya at the East African Court of Justice.
The dispute centers around Kenya’s refusal to allow Uganda’s National Oil Company (UNOC) access to the Kenya Pipeline Company (KPC) infrastructure under a new arrangement directed by Uganda’s Cabinet.
Uganda alleges that Kenya is denying UNOC the right to operate as an Oil Marketing Company (OMC) in Kenya.
UNOC had initially sought to transport fuel through the Kenya Pipeline but was instructed by the Energy and Petroleum Regulatory Authority (EPRA) to register as an oil marketer in Kenya.
The legal battle escalated when UNOC, unable to fulfill all the required documents, sought exemption, leading to a case filed at the Machakos High Court.
The court granted conservatory orders against any exemptions for UNOC, prompting Uganda to hold Kenya responsible for delays.
In its suit at the East African Court of Justice, Uganda is challenging the licensing protocols imposed by EPRA on UNOC, accusing Kenya of violating the East African Community treaty.
Uganda seeks a declaration that it does not require a license from EPRA to access KPC systems and transport petrol from Mombasa to Uganda.
Furthermore, Uganda demands that Kenya treats UNOC as a service supplier on commercial terms no less favorable than other suppliers, with a permanent injunction against unrealistic restrictions on UNOC’s access to KPC.
The court documents emphasize Uganda’s goal to import petroleum directly through UNOC to address supply vulnerabilities and potential increases in fuel prices.
As the case unfolds, Uganda has taken steps to diversify its fuel sources, entering a five-year contract with an Arab company to meet its entire fuel needs, signaling a potential shift away from reliance on Kenyan Oil Marketing Companies.
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